indian national policy on street vendors 2006

8/6/2019 Indian National Policy on Street Vendors 2006

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NATIONAL POLICYON

URBAN STREET VENDORS_________

REPORT & RECOMMENDATIONS

May 2006

Chapter Name Page

1. Preface 1

2. Background 2

3. National Policy on Urban Street Vendors 10


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Chapter 1

Preface

1.1 In its National Common Minimum Programme, the United ProgressiveAlliance (UPA) Government, which was elected in 2004, stated that:

The UPA government is firmly committed to ensure the welfare and well-being of all workers, particularly those in the unorganized sector whoconstitute 93% of our workforce. Social security, health insurance andother schemes for such workers like weavers, handloom workers,fishermen and fisherwomen, toddy tappers, leather workers, plantationlabour, beedi workers, etc will be expanded.

1.2 In line with the commitment made by the United Progressive Alliance(UPA) Government, in the National Common Minimum Programme, theNational Commission for Enterprises in the Unorganised Sector was set up,under the Chairmanship of Dr. Arjun Sengupta, in September 2004 with themandate to examine the problems of small enterprises and suggest measuresto overcome them. The Terms of Reference mandate the Commission,amongst others to;

i. Identify constraints faced by small enterprises with regard to freedomof carrying out the enterprise, access to raw materials, finance, skills,entrepreneurship development, infrastructure, technology and marketsand suggest measures to provide institutional support and linkages tofacilitate easy access to them; and

ii. Suggest the legal and policy environment that should govern theinformal/unorganized sector for growth, employment, exports andpromotion.

1.3 While the Commission was engaged in the exercise of identifyingconstraints faced by small and micro enterprises and suggesting measures toovercome them, the Prime Ministers Office requested the Commission toexamine and comment on priority on the National Policy on Urban StreetVendors prepared in early 2004.

1.4 The Commission has considered the views made available by thevarious stakeholders. The Commissions recommendations are now beingprovided to the Honble Minister of State (I/C) for Urban Employment andPoverty Alleviation for further action, to consider and implement the same.


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Chapter 2

Background

2.1 Street vendors form a very important component of the urban informalsector in India. According to a study conducted during 1999-2000, by theNational Association of Street Vendors of India (NASVI), Mumbai has thelargest number of street vendors numbering around 250,000. Kolkatta hasmore than 150,000 street vendors. Ahmedabad and Patna have around80,000 each and Indore, Bangalore and Bhubaneshwar have around 30,000street vendors.

2.2 In order to find out the total number of street vendors, the Commission

has computed the data available in the 55th round of National Sample Surveyconducted during 1999-2000. There are two ways of estimating thesenumbers. According to the first, workers engaged in retail trade according totheir location of work were identified, the details of which are given in Table 1below. As per the Table, 43.64 lakh workers are engaged in retail trade eitherin rural or urban streets or without any fixed place of work. The secondmethod is to estimate the number of street vendors by identifying workers whodescribe themselves as street vendors and boot polishersworking in differentlocations including urban/ rural streets or without any fixed location. Table 2gives the details of these estimates at 30.50 lakh workers. If we identify thosewho describe themselves as street vendors working in urban/rural streets andwithout any fixed location, the total number will come down to 13.87 lakh. Asper these estimates, the total number of street vendors (1999-2000) wouldrange from 30 to 43 lakh both in rural and urban areas. For urban areasalone, it would range between 17 to 25 lakh. The difference between thelower and the higher estimate might be due to the fact that a number ofworkers engaged in retail trade and working in streets or without any fixedplace of work do not describe themselves as street vendors.

TABLE- 1.

Distribution of workers based on location of work place for retail trade(NIC-52) by sex and residence (in Lakh)

Rural Urban Combined

Location M F Total M F Total M F TotalWithoutfixedplace 10.39 1.79 12.18 9.64 3.43 13.07 20.03 5.22 25.25Rural:

street withfixed 4.88 0.91 5.79 1.34 0.34 1.69 6.22 1.26 7.48


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location

Urban:street with

fixedlocation 0.67 0.04 0.71 8.59 1.62 10.21 9.26 1.66 10.92Total 15.93 2.74 18.68 19.58 5.39 24.97 35.51 8.13 43.64

TABLE- 2.

Distribution of workers(street vendors and boot polishers) by location sectorand sex (NCO 431 & 599) (in Lakh)

Rural Urban Combined

Location M F Total M F Total M F TotalWithout fixedplace 4.00 0.62 4.62 3.36 0.86 4.21 7.36 1.47 8.83Rural:Street withfixed location 1.22 0.32 1.54 0.36 0.23 0.58 1.58 0.54 2.12Urban:Street withfixed location 0.23 0.02 0.25 2.01 0.64 2.66 2.24 0.67 2.91Total 5.46 0.95 6.41 5.72 1.73 7.45 11.18 2.68 13.87All Locations 11.24 2.07 13.31 14.33 2.86 17.19 25.57 4.93 30.50

Source: Computed from NSSO 55th round 1999-2000.Note: Workers covered belong to both Usual Principal status and Subsidiarystatus.

2.3 In most Indian cities the urban poor survive by working in the informalsector primarily due to poverty, but also due to a variety of factors such aslack of gainful employment in the rural areas, shrinkage of employment in theformal sector, and low levels of skill and education required for the better paid jobs in the formal sector. Street vendors are mainly those who areunsuccessful or unable to get regular jobs. They try to solve their problemsthrough their own meagre resources. The NASVI study mentioned above

report an average earning for street vendors (in 2000) between Rs. 40 andRs. 80 per day, for work over 10 hours a day, under gruelling conditions.

2.4 Street vendors are regarded as public nuisance and it is aggressivelyargued for restoration of pavements as public space when street vendorsencroach on them. The Supreme Court in the Sodhan Singh versus NDMC,1989 case ruled that:

If properly regulated according to the exigency of thecircumstances, the small traders on the side walks can

considerably add to the comfort and convenience of the generalpublic, by making available ordinary articles of everyday use for


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a comparatively lesser price. An ordinary person, not veryaffluent, while hurrying towards his home after a days work canpick up these articles without going out of his way to find aregular market. The right to carry on trade or businessmentioned in Article 19(1)g of the Constitution, on street

pavements, if properly regulated cannot be denied on theground that the streets are meant exclusively for passing or re-passing and no other use.

2.5 This decision of the Supreme Court has emphasized several importantaspects of street vending and use of public space and notes the positive roleof street vendors in providing essential commodities to common people ataffordable prices and at convenient places. It also notes that street vendingcannot be denied merely on the ground that pavements are meant exclusivelyfor pedestrians and that street vendors are exercising their constitutional rightto carry out trade or business. Hence it should be regulated properly and not

abolished.

2.6 In a recent decision of Sudhir Madan & others versusMCD & others2006 the Supreme court has ruled that:

We have also to keep in mind the principle that the right to usethe pathway, footpath etc. is that of the citizens. No hawker canclaim a right to defeat the rights of other citizens. The hawkersare large in number, but the population of citizens is manytimes more than that of hawkers and, therefore, thefundamental rights of the citizens cannot be put in jeopardy bypermitting hawkers and squatters to block roads, footpaths,public parks, etc., etc. The Authority, which frame a scheme,has to keep this paramount consideration in mind. Consistentwith the rights of citizens, if it is possible to provide any space tohawkers, squatters etc., that may be done consistent with thepolicy to be framed by the concerned Authority. The Authoritywill have to consider on what principles hawking andno hawking zone have to be carved out. It will alsohave to consider in which zones no hawking activitycan be permitted. It will also have to consider what nature of

goods can be sold by hawkers, squatters, etc. so thatcleanliness is maintained and at the same time free flow oftraffic and movement of pedestrians is not obstructed.

2.7 This decision gives further emphasis on, location of the Street Vendorsin a planned manner so that the Street Vendors carry on their businesswithout obstructing the free flow of traffic or movement of pedestrians. TheCommission while suggesting the policy as enumerated in the following pageshas ensured that it is conformity with the letter and spirit of the observations ofthe Supreme Court on the subject.

2.8 Despite the Supreme Courts rulings, street vendors conduct theirbusiness amidst insecurity. Whenever eviction drives are conducted their


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wares are confiscated or even destroyed. Section 34 of the Police Actempowers the police to remove any obstructions on the streets. Even licensedstreet vendors can be evicted under this law. In order to overcome theserestrictions street vendors organize themselves into unions or localassociations who negotiate with the local authorities (the officers in the

municipal wards and police stations) for occupying public space. Thisinvariably means offering rents (bribes) to the authorities for warding offeviction drives or forewarning them of impending drives. There are otherforms of extracting rents. In some cases local musclemen, more often thannot with the backing of local political leaders, collect protection fees throughthreats. The above mentioned Act is a classic example of how a well meaningAct for peaceful civic life has become a source of rent-seeking throughextraction of bribes.

2.9 In order to evolve a National Policy on Urban Street Vendors theCommission has had interaction with different stakeholders such as National

Alliance for Street Vendors of India (NASVI), Self Employed WomensAssociation (SEWA), and Manushi and considered the comments received onthe 2004 draft. The main suggestions from them are as follows:

(a) The stakeholders expressed their concern on the continuingharassment of street vendors and lack of security for carrying on theirbusiness despite the landmark judgment of the Supreme Courtrecognizing freedom of profession as one of the fundamental rights.

(b) They expressed their preference for direct relationship with the UrbanLocal Bodies for payment of fees and other dues and asked forimmediate discontinuance of the practice of farming out of Tehbazari(fee) to contractors and other intermediaries, as it results in exploitationof street vendors by anti-social elements. It has been their experiencethat Tehbazari (fee) contracts are captured by the mafia enjoyingpolitical/bureaucratic patronages, who exploit the street vendors withimpunity.

(c) They suggested that the prescribed license fees could be paid at thedesignated banks directly by the vendors.

(d) They sought an immediate end to eviction of street vendors and thepractice of confiscation of their goods.

(e) They demanded that identity cards specifying the authorized place ofvending should be issued to all street vendors to enable them to carryon their profession and earn a decent livelihood. For this purpose, theysuggested that city-wise census of street vendors should be carriedout, followed by regular updating of the database.

(f) They suggested that the Town Vending Committees should be maderesponsible for allocation of space to the street vendors. These

Committees may also determine the fee to be charged from the streetvendors considering the local conditions. The right of every vendor to


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ply his trade should be recognized and in case of a conflict, the TownVending Committees should be empowered to decide on the allocationof space. If there is a shortage of space, vending space should beallotted in new sectors on payment of the prescribed fees. The feescollected should be used for the welfare of the street vendors.

(g) They stressed the need for legal protection to Street Vendors who areregistered and have paid the prescribed fee. They demanded theimposition of stiff penalties on the policemen and municipal employees,who attempt to evict any registered vendor.

(h) They were of the opinion that the street vendors would be willing tocontribute to specially designed schemes for providing insurance coverfor their assets and for taking care of such contingencies andeventualities as death, disability, sickness and old age. The need for

provision of basic amenities such as water and toilet facilities at thevending sites was also stressed upon.

2.10 Based on its interaction with the stakeholders and on consideration ofthe comments received, the Commission is of the view that the 2004 policyrequired revision on important aspects of the mechanism of implementation ofthe policy. The overarching objective to be achieved through this Policy is toprovide and promote a supportive environment for earning livelihoods to thevast mass of urban Street Vendors while ensuring that such activity does notlead to overcrowding and unsanitary conditions in public spaces and streets.

2.11 The important changes suggested by the Commission andincorporated in the National Policy on urban Street Vendors are as under:

2.11.1. Considering the resistance by Resident Welfare Associations (RWAs),street vending in private areas has been recommended only with the consentof the residents.

2.11.2. The centre piece of this Policy is the role of Town VendingCommittees (TVCs) to be constituted on a Ward-wise basis for all towns bythe Municipal Authorities. This would make the entire process and thereby the

Policy participatory, more near to the ground level realities, take care of thelocal conditions and more particularly the Ward they represent and, take intoaccount the local knowledge to arrive at a consensus for resolution ofdisputes. The earlier policy recommended ward-wise TVCs only for biggertowns and was silent on the point as to who would constitute it.

2.11.2.1 The Commission recommends a revised composition of theTVCs wherein it feels that market associations, traders associations andRWAs have no role to play.

2.11.2.2 The Commission recommends the following functions for the

TVCs:


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a) Registration of the Street Vendor and ensuring issue of the identitycard to the Street vendor after its preparation by the MunicipalAuthority;

b) Monitor the facilities to be provided to the street vendors by theMunicipal Authorities;

c) Identify areas for hawking with no restriction, areas with restriction withregard to the dates, days and time, and, areas which would be markedas no-vending zones;

d) Set the terms and conditions for hawking;e) Take corrective action against defaulters; and,f) Collect revenue.

2.11.2.3 In order to implement the decisions of TVCs, the concernedMunicipal Authority shall appoint an official, who shall act as the Convenor ofthe TVCs as well as be responsible for implementing its decisions.

2.11.2.4 The functions as specified in the earlier policy were not soelaborate and there was no mechanism suggested for implementation of thedecisions of the TVCs.

2.11.3. The demarcation of hawking zones should be city/town specific.Therefore, this Policy recommends conducting surveys of street vendors andtheir location by competent professional institutions.

2.11.4. As regards allocation of space, the Commission recommends that theMunicipal Authorities should regulate allocation of space based on previousoccupancy. If the number of applicants exceeds the number of spacesavailable, a transparent system of selection such as lottery should befollowed. All allotments should be based on payment of a prescribed fee fixedby the Municipal Authorities based on the recommendation of the TVCs. Theearlier policy recommended the allocation by lottery and fee wherein themarket forces would curtail the number of vendors.

2.11.5. A system of registration of hawkers and issue of Identity Cards withrevised details is recommended. Such Cards are to be issued by the TVCs.

2.11.6. To encourage the street vendors to obtain registration as envisaged in

this Policy and to provide them opportunities for upward occupational mobility,the Commission recommends that the registered street vendor shall havepreference of allotments whenever licenses are issued by the MunicipalAuthorities for setting up new shops, depending on the length of registration.

2.11.7. The Commission recommends the collection of revenue by MunicipalAuthorities through TVCs which would ensure that it is based on apredetermined rate of fee. If complaints on this account are registered withthe TVCs, adequate measures should be taken to redress the same.

2.11.8. The Commission suggests a detailed monitoring mechanism at three

levels: (a) TVCs at the Ward level; (b) Chief Executive Officer at the Municipallevel, and (c) concerned official at the State level. This is very important as


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legislation without proper implementation would not redress the grievances ofthis vast mass of street vendors.

2.11.9. As regards eviction, the Commission feels that it is resorted to by theMunicipal Authorities on the ground that they cause danger, obstruction or

injury to any person in any public way or public line of navigation undersection 283 of the IPC (danger or obstruction in public way or the line ofnavigation) and under section 34 of the Police Act. These two provisionscreate contradiction between a legal licensed vendor and illegal obstructionor causing nuisance, resulting in physical eviction of even licensed vendors.To redress the situation experienced by the street vendors, the Commissionrecommends that, the Central Government may amend Section 283 of theIPC and Section 34 of the Police Act, to exempt the street vendors from theirpurview with reasonable restrictions. Such reasonable restrictions arespecified by the Commission. In the view of the Commission such reasonablerestrictions should specify the areas where the exemptions from the two

Sections shall not apply in larger public interest. It shall also specify themonth, day, date and time during which the exemption shall not apply.

2.11.9.1 Mechanism of Eviction: The Commission suggests amechanism of eviction by due notice for clearing of space as first step, and inthe second step, if the space is not cleared in the notified time, fine should beimposed. If the space is not cleared even after the notice and imposition offine, only then eviction should be resorted to.

2.11.9.2 In regard to the confiscated goods, the Commission suggeststhat the street vendors shall be entitled to get their goods back within areasonable time on payment of prescribed fee, determined by the TVCs.

2.11.10. The Commission recommends measures of self regulation by thestreet vendors in matters of hygiene and cleanliness.

2.11.11. As regards social security, the Commission recommends theapplication of legislation on Social Security for Unorganised Sector Workersas promised in the National Common Minimum Programme for which it hasrecommended the Unorganised Sector Workers Social security Bill,2005.

2.11.12. The Commission also recommends the applicability of legislation inthe Unorganised Sector Workers (Conditions of Work & LivelihoodPromotion) Bill, 2005 to address issues relating to livelihood promotion ofstreet vendors.

2.11.13. As regards access to credit and insurance, the Commissionrecommends that TVCs be entrusted with the responsibility of disseminatinginformation pertaining to availability of credit, especially providing micro creditand link the street vendors with the credit giving institutions.

2.11.13.1 The Commission recommends extension of financial

arrangements under the Credit Guarantee Fund Scheme for small industries(CGTSI), designed by the Ministry of Small Scale Industries, Government of


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India and the Small Industries Development Bank of India (SIDBI) to theStreet Vendors, with suitable modifications, to enhance their credit off take inthe system. It is recommended that in the CGTSI scheme a further riskcoverage of 10% may be built in for street vendors to enable the banks toenhance credit to this sector and reduce their risk.

2.11.14. The Commission recommends a detailed action plan for variouslevels namely; Government of India, State Governments, MunicipalAuthorities, concerned Ministry of the Government of India, for proper andeffective implementation of the policy.

2.11.15 The Commission recommends that the TVCs be maderesponsible for redressal of grievances and resolution of disputes arisingamongst the Street vendors or between the Street Vendors and third partiesin the implementation of this policy.


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Chapter 3

National Policy on Urban Street Vendors

3.1. Introduction:

Street vending as a profession has been in existence in India sincetimes immemorial. According to one study, Mumbai has the largest number ofStreet Vendors numbering around 250,000, while Delhi has around 200,000.Kolkatta has more than 150,000 Street Vendors and Ahmedabad has around100,000. Women constitute a large number of Street Vendors in almost everycity. As per the 55th round of National Sample Survey, workers whodescribe themselves as street vendors in urban areas working in all

locations is around 17 lakh, while workers engaged in retail tradewithout a fixed place or working in urban streets is around 25 lakh. Urban vending is not only a source of employment but provide affordableservices to the majority of urban population.

3.1.1. This Policy would like to highlightthe ruling of the SupremeCourt that if properly regulated according to the exigency of thecircumstances, the small traders on the side walks can considerably add tothe comfort and convenience of the general public, by making availableordinary articles of everyday use for a comparatively lesser price. An ordinaryperson, not very affluent, while hurrying towards his home after a days workcan pick up these articles without going out of his way to find a regularmarket. The right to carry on trade or business mentioned in Article 19(1) g ofthe Constitution, on street pavements, if properly regulated cannot be deniedon the ground that the streets are meant exclusively for passing or re-passingand no other use.

3.1.2. This Policy would also like to highlightArticles 39 (a) and (b)of the Constitution whichmentions that the State shall in particular direct itsPolicy so that

(a) the citizens, men and women equally, have the right to an adequatemeans of livelihood.(b) the ownership and control of the material resources of the community areso distributed as best to sub-serve the common good.

3.1.3. Street Vendors provide valuable services to the urban population whiletrying to earn a livelihood and it is the duty of the State to protect the right ofthis segment of population to earn their livelihood. This Policy aims to ensurethat this important section of the urban population finds recognition for itscontribution to society, and is conceived of as a major initiative for urbanpoverty alleviation.


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3.1.4. The role played by the Street Vendors in the economy as also inthe society needs to be given due credit. But, the ground reality is suchthat the Street Vendors are considered as unlawful entities and aresubjected to continuous harassment by Police and MunicipalAuthorities. This situation needs to be redressed taking into account the

right to livelihood of this class of working poor and the service theyprovide to the society.

3.1.5. The centre piece of this Policy is the role of Town VendingCommittees to be constituted on a Ward-wise basis by the MunicipalAuthorities (hence forth referred to as TVCs). This would make the entireprocess and thereby the Policy participatory, more near to the groundlevel realities, would take care of the local conditions and necessitiesmore particularly the Ward they represent, and, would take into accountthe local knowledge to arrive at a consensus for resolution of disputes.

3.2. Definition:

For the purposes of this Policy, a Street vendor is broadlydefined as a person who offers goods or services for sale to the public withouthaving a permanent built up structure in a street.

3.2.1. This Policy recognises three basic categories of StreetVendors. First, those Street Vendors who carry out vending on a regularbasis with a specific location; Second, those Street Vendors who carryout vending not on a regular basis and without a specific location, forexample, Vendors who sell goods in weekly bazaars during holidays andfestivals and so on; Third, the Mobile Street Vendors.

3.2.2. Thus, theStreet Vendors may be stationary by occupyingspace on the pavements or other public places and/or private areas (withimplicit or explicit consent), or may be mobile in the sense that they movefrom place to place carrying their wares on push carts or in cycles or basketson their heads, or may sell their wares in moving bus, etc. In this Policydocument, the term urban vendor is inclusive of both traders and serviceproviders, stationary as well as mobile Vendors and incorporates all other

local/region specific terms used to describe them, such as, hawkers,pheriwallas, rehri-patri wallas, footpath dukandars, sidewalk traders, etc.

3.3. Overarching Objective:

3.3.1. The overarching objective to be achieved through this Policy is toProvide and promote a supportive environment for earning livelihoodsto the vast mass of urban Street Vendors while ensuring that suchactivity does not lead to overcrowding and unsanitary conditions inpublic spaces and streets.

3.3.2 Specific Objectives:


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The specificobjectives of the Policy are as following:

a) Legal: To give Street Vendors legal status by formulatingappropriatelaws and providing legitimate hawking zones in urban development/zoning plans and ensuring their implementation;

b) Facilities: To provide facilities for appropriate use of identified spaceincluding the creation of hawking zones in the urban development/zoning plans, mentioned above;

c) Regulation: To eschew imposing numerical limits on access to publicspaces by discretionary licenses and instead moving to nominal fee-based regulation of access, where previous occupancy of the spaceby the Street Vendor for vending purposes, determines theallocation of space.

The Municipal Authorities should regulate allocation of spacebased on previous occupancy. If demand for space is in excess ofsupply, a transparent system of selection such as lottery shouldbe followed. All allotments should be based on payment of aprescribed fee fixed by the Municipal Authorities based on therecommendation of the TVCs.

d) Role in distribution: To make Street Vendors a special component ofthe urban development /zoning plans by treating them as an integraland legitimate part of the urban distribution system;

e) Self Regulation: To promote self-regulation in matters relating tohygiene, including disposal of waste amongst Street Vendorsboth in the individually allotted areas as well as in areas occupiedby the Street Vendors as a whole.

f) Organization: To promote, if necessary, organizations of StreetVendors e.g. Unions / Co-operatives/ Associations and other forms oforganization to facilitate their empowerment;

g) Participation: To set up participatory mechanisms with representation

by urban Vendors organizations, (Unions / Co-operatives/Associations), Voluntary organizations, Municipal Authorities, thepolice, Residents Welfare Association (RWAs) and others for orderlyconduct of urban vending activities;

h) Rehabilitation of Child Vendors: to prevent vending by childrenand seek their rehabilitation where ever such practice exists, inconformity with the Child Labour (Prohibition & Regulation)Act,1986;

i) Social Security: To provide protective Social Security to take care

of contingencies such as sickness, maternity and old age;


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j) Promotional Measures: to promote access to such services ascredit, housing and upgradation of skills. For such promotion, theservices of Self Help Groups (SHGs)/ co-operatives/ Federations/Micro Finance Institutions (MFIs) etc should be encouraged.

3.4. Elements of the Policy:

3.4.1 Planning Norms:

Following the Supreme Court orders, some cities drafted guidelines forregulating urban vending activities. However, the provisions made so far donot generally recognize the fact that demand for their wares/ services is highlyspecific and varies as to location and time, manifesting as a natural propensityof Street Vendors to locate in various places at particular times. On thecontrary, the present urban planning norms completely disregard theformation of such natural markets. They also do not have implementation

systems in place. Planning norms should be supportive of such naturalmarkets.

3.4.1.1 Spatial Planning norms - demarcation of vending zones:

The demarcation of hawking zones should be city/town specific. To make theplans conducive and adequate for the Street Vendorsof the respective city /town, the following should be adhered to:

a) It should take into account the natural propensity of the Street Vendorsto locate in certain places at certain times in response to patterns ofdemand for their goods/services. Therefore, this Policy recommendsconducting surveys of Street Vendors and their location bycompetent professional institutions. This will be sponsored by theMinistry of Urban Employment & Poverty Alleviation/ concerneddepartment of State Governments/ Municipal Authorities.

b) City Authorities should provide sufficient spaces, designated asVendors markets in layout plans at locations of such natural markets,for the number of Street Vendors (static and mobile) which can cater tothe demand for their wares / services. The Municipal Authorities

should regulate allocation of space based on previous occupancy.If the number of applicants exceeds the number of spacesavailable, a transparent system of selection such as lottery shouldbe followed. All allotments should be based on payment of aprescribed fee fixed by the Municipal Authorities based on therecommendation of the TVCs.

c) Mobile urban vending should be permitted in all areas even outside thedesignated Vendors markets, unless designated as no-vending zonethrough a participatory process. The no-vending zones may benotified both in terms of location and time.1[1] Locations should not be


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designated as no-vending zones for frivolous reasons; the publicbenefits of declaration of a no-vending zone should clearly outweighthe potential loss of livelihood and non-availability of goods andservices that it would involve.

d) With the growth of city/town every new area should have adequateprovisions for Street Vendors.

e) Designation of Vendors markets / no-vending zones should not be leftto the sole discretion of any civic or police authority, but, must beaccomplished by a participatory process by TVCs, to be constitutedby the Municipal Authorities. It will consist of the following:

(i) Designated official of Municipal Authorities;(ii) Traffic and Local Police;(iii)Public Land Owning Authority;

(iv) Representative from associations of Street Vendors; and,(v) Representative from a bank in the local area.

The Street Vendorsrepresentatives should preferably constitute at least 25% to 40%of the total number of members of theTVCs. At least 1/3rd of the representatives of StreetVendors should be women. Process for selection of Street Vendors representativesshould be based on the following criteria:

Membership based organisations Financial Accountability

f) The concerned TVCs should ensure that provisions for space forVendors markets are pragmatic, consistent with formation of naturalmarkets, sufficient for existing demand for Street Vendors goods andservices, as well as likely increase in line with anticipated populationgrowth.

g) Provisions of space may include temporary designation as Vendorsmarkets (e.g. as weekly markets) whose use at other times may bedifferent (e.g. Public Park, parking lot). Timing restriction on urbanvending should correspond to the needs of ensuring non-congestion ofpublic spaces / public hygiene.

h) The TVCs should ensure continuation and up-gradation of weekly

markets

Other functions of the TVCs are described below:

3.4.1.2 Quantitative Norms: refer to the norms on amount of space to beprovided for Vendors markets. At the town/city level enough space should bedesignated for Vendors markets. Each town/city may evolve its ownquantitative norms, but after proper surveys.

3.4.1.3 Qualitative guidelines: refer to facilities to be provided at

Vendors markets by the Municipal Authorities. They would invariablyinclude:


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(i) Provisions for solid waste disposal;(ii) Public toilets to maintain cleanliness;(iii)Aesthetic design of mobile stalls/ push carts ;(iv)Provision for electricity;

(v) Provision for drinking water;(vi)Provision for protective covers to protect their wares as well as

themselves from heat, rain, dust etc; and,(vii) Storage facilities including cold storage

TVCs should monitor the implementation and the functioning ofthese facilities. Shortcomings, if any, will be brought to the notice of theMunicipal Authorities by the TVCs.

3.4.2 Registration:

A system of registration of hawkers and non-discretionary regulation ofaccess to public spaces in accordance with the planning standards and natureof trade/ service should be adopted. This is described in greater detail below.

3.4.2.1 Registration System:

a) The power to register would be vested with the TVCs. Uponregistration, the Municipal Authority would issue an identity card withCode Number etc. to the Street Vendor, through the TVCs.

b) All Vendors in each city should be registered at a nominal fee to bedecided by the Municipal Authorities based on a reliable means ofidentification. There should preferably be no numerical restriction orquotas, or prior residential status requirements of any kind.

c) Registration should be renewed after every three years.

d) The registration process must be simple.

e) The Vendors will be issued Identity Cards which would contain:(i) Name, Address and Photograph of the Vendor;(ii) Name of any one nominee from the family;(iii) Nature of business; and,(iv)Category (Stationary /Mobile).

f) Children below 14 years would not be allowed in the card for conductof business.

The registered Street vendor shall have preference of allotmentswhenever licenses are issued by the Municipal Authorities for setting up

new shops, depending on the length of registration. This will encouragethe Street Vendors to obtain registration as envisaged in this Policy.


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This will also provide them opportunities for upward occupationalmobility.3.4.3 Functions of the TVCs:

The TVCs shall perform the following functions:

a) Registration of the Street Vendors and ensuring issue of theidentity card to the Street vendor after its preparation by theMunicipal Authority;

b) Monitor the facilities to be provided to the Street Vendors by theMunicipal Authorities;

c) Identify areas for hawking with no restriction, areas withrestriction with regard to the dates, days and time, and, areaswhich would be marked as no-vending zones;

d) Set the terms and conditions for hawking;e) Take corrective action against defaulters; and,

f) Collect fees or other charges as authorised by the competentauthority.

In order to implement the decisions of TVCs, the concernedMunicipal Authority shall appoint an official, who shall act as theConvenor of the TVCs as well as be responsible for implementing itsdecisions.

3.4.4 Collection of Revenue:

The Street Vendors would be charged a monthly fee for access tovarious services. There should be direct linkage between the MunicipalAuthorities and Street Vendorsfor collection of:

a) Registration fee;b) Monthly maintenance charges differentiated according to

location/type of business; and,c) Fines and other charges, if any.

3.4.4.1. The TVCs should be made available a proportion of revenuegenerated from registration fees and monthly fees from their Ward to run their

operations subject to a minimum grant from the Municipal Authorities.

3.4.4.2. The collection of revenue by Municipal Authorities throughTVCs should ensure that it is based on a predetermined rate of fee andshould not give scope for any kind of extortion. If complaints on thisaccount are registered with the TVCs, adequate measures should betaken to redress the same.

3.4.5 Monitoring Mechanism:

Monitoring will be carried on at the following levels:


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a) TVCs : As elaborated in this policy, TVCs will be responsible tomonitor the implementation of this policy at the Ward level;

b) Chief Executive Officer of Municipal Authority: Chief ExecutiveOfficer of each Municipal Authority shall maintain a register of all

TVCs within the Municipality along with a list of registered StreetVendors (stationary/mobile) of each TVC. The Municipal Authoritywould continuously monitor the functioning and activities of theTVCs and shall send an annual report on the same to theSecretary of the concerned department of the State Governmentcontaining the following details:

(i) Number of registered Street Vendors;(ii) Revenue collected;(iii)Promotional and other measures undertaken;(iv)Complaints registered; and,

(v) Expenditure incurred.

c) State level: State level official shall send an annual report to theCentral Government containing relevant statistics and otherdetails of the TVCs and the conditions of the Street Vendors in theState.

3.5. Eviction, relocation and confiscation:

One of the major problems faced by the Street Vendors is frequenteviction resorted to by the Municipal Authorities on the ground that theycause danger, obstruction or injury to any person in any public way orpublic line of navigation under section 283 of the IPC (danger orobstruction in public way or the line of navigation). They also faceeviction under section 34 of the Police Act due to the following:Cause obstruction in any street or public place by:

a) Allowing animals or vehicle;b) Leaving any vehicle standing or fastening any cattle in the street

or in the public place;c) Using any part of a street or public place as a halting place for

vehicles or cattle;d) Leaving any box, bale package or other things whatsoever orupon a Street for an unreasonable length of time or contrary toany regulation; and,

e) By exposing anything for sale or setting out anything for sale in orupon any stall, booth, board, cask, and basket or in any other waywhatsoever.

3.5.1. These two provisions create contradiction between a legallicensed vendor and illegal obstruction or causing nuisance, resultingin physical eviction of even licensed Vendors.


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3.5.2. To redress the situation experienced by the Street Vendors, theCentral Government shall amend Section 283 of the IPC and Section 34of the Police Act, to exempt the Street Vendors from their purview withreasonable restrictions. Such reasonable restrictions shall specify thenature of obstruction that might be caused to the general public. For

example, hawking and Street vending in and around hospitals, officesand other important places; obstruction of passage in streets with highvehicular density; etc. Reasonable restriction should specify the areaswhere the exemptions from the two Sections shall not apply in largerpublic interest. It shall also specify the month, day, date and time duringwhich the exemption shall not apply.

3.5.3. Corresponding enactments, if necessary, should be carried out bythe State Governments and Municipal Authorities within a reasonableperiod of time, not exceeding one year from the date of announcementof this Policy.

3.5.4. In case, where public obstruction is caused, there should be amechanism of imposing fines, with due notice for clearing of space. TheStreet Vendors should be warned/informed before starting the clearingup process. In case, where vending is done in a no- vending zonecausing public obstruction, notice of at least few hours to clear thespace should be given. In the second step, if the space is not cleared inthe notified time, fine should be imposed. If the space is not clearedeven after the notice and imposition of fine, only then eviction should beresorted to.

3.5.5. In regard to the confiscated goods, the Street Vendors shall beentitled to get their goods back within a reasonable time on payment ofprescribed fee, determined by the TVCs.

3.6. Self regulation:

This Policy advocates collective arrangements initiated by theStreet Vendors to redress any harmful effects on the locality caused bythe occupation of street vending. These could be waste disposal,hygiene in the area of vending place of the Street vendor as well as in

the location occupied for Street vending as a whole.

3.6.1 Hygiene and cleanliness:

Every Street vendor shall keep a waste collection basket in theplace of vending. He/She shall contribute/promote to the collectivedisposal of waste. Similarly public toilet facilities or similararrangements may also be organized by associations of/for StreetVendors, which may be run on pay and use basis. To promote suchregulations, Central Government/ State Governments / MunicipalAuthorities shall encourage organisations of/for Street Vendors, by

providing financial assistance.


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3.7. Others:

3.7.1 Social Security:

Street Vendors as a group belong to the unorganised sector of the

economy. As such, they dont have government-assisted social security.However, in some states, social security schemes such as Old AgePension and other benefits are being provided through the WelfareBoards and similar bodies. But, their number is very small. There arefew Non Government Organisations (NGOs), who organize socialsecurity schemes for the Street Vendors. It is the Policy of theGovernment of India, to extend social security cover in the unorganisedsector as a whole, for which the Government is considering legislationas promised in the National Common Minimum Programme. Once this isin place, it shall equally apply to the Street Vendors. The national effortsmay be supplemented by the State Governments / Municipal Authorities

/ organisations of/for Street Vendors.

3.7.2 Promotional Measures:

3.7.2.1 Access to credit and insurance:

Credit is an important requirement in street vending, both to sustainexisting activity and to upscale it. Since vendors work on a turnoverbasis, they often resort to high interest loans from non-institutionalsources. Although they usually demonstrate high repayment capacity,absence of collateral and firm domiciliary status usually debars themfrom obtaining institutional credit.

Self-help groups (SHGs) and organizations of street vendors should beenabled by the Municipal authorities to the banks for access to credit.The TVCs shall disseminate information pertaining to availability ofcredit, specially micro credit and shall link street vendors with the creditgiving institutions. Street vendors should also be assisted in obtaininginsurance through Micro-insurance and other agencies.

With respect to credit, the Commission has noted that Ministry of SmallScale Industries, Government of India and the Small IndustriesDevelopment Bank of India (SIDBI) have designed the Credit GuaranteeFund Scheme for small industries (CGTSI), with a view to resolving theproblem of collaterals, and to induce banks to gradually move awayfrom a completely risk-averse stance towards Small Scale Industries.CGTSI guarantees upto 75% of the credit risk subject to loan cap of Rs.25 lakh and guarantee cap of Rs. 18.75 lakh per borrower.

These financial arrangements may be extended to the Street Vendors,with suitable modifications, to enhance their credit off take in the

system. It is recommended that in the CGTSI scheme a further risk


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coverage of 10% may be built in for street vendors to enable the banksto enhance credit to this sector and reduce their risk.

The registration done by the TVCs and the domiciliary status confirmedby them on the identity card as also in their records along with the

enhanced risk coverage mentioned earlier should make it possible tocover a large number of Street Vendors for institutional credit.

3.7.2.2 Training and Skill up-gradation:

Street Vendors being micro enterprises should be provided withtraining to upgrade their technical and business skills so as to increase theirincome as well as to look for alternatives.

3.7.2.3 Other Promotional Measures:

The Government of India is considering legislation as promised inthe National Common Minimum Programme for promotion of livelihoodof the workers in the unorganised sector. Once this is in place, it shallequally apply to the Street Vendors.

3.8. Organizing the Street Vendors:

To get the benefits of the social security schemes and otherpromotional measures in an effective manner, it is essential that theStreet Vendors form organizations. Trade Unions and other voluntaryorganisations should take active role and help the Street Vendors toform their organisations by providing counselling and guidancewherever required.

3.9. Role of State Governments:

All State governments should ensure that institutional arrangements,legislative frameworks and other necessary actions achieve conformity with

the National Policy for Street Vendors

3.10. Action Plan for stake holders:

i. It shall be the responsibility of the Government of India to initiateamendments to the IPC and the Police Act as indicated in thisPolicy.

ii. It shall be the responsibility of the State Government to legislate

and frame rules on the basis of Central legislation, to suit the localconditions.


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iii. It shall be the responsibility of the Municipal Authorities to

implement legislation and other initiatives as indicated in thisPolicy.

iv. As soon as this Policy comes into force, but not later than oneyear, the Municipal Authority shall constitute ward wise TownVending Committees to implement the National Policy at the locallevel.

v. It shall be the responsibility of the concerned Ministry of theGovernment of India to initiate surveys and studies to build up anadequate data and information base pertaining to the StreetVendors in the metropolitan towns. In addition, the Government ofIndia shall assist such institutions and organisations who comeforward to study the problems of Street Vendors in other towns.

vi. The State Governments and Municipal Authorities shall alsoassist institutions and organisations to undertake studies andprojects relating to the conditions of Street Vendors as well asplanning and implementation of promotional measures for StreetVendors in their respective areas.

3.11. Dispute Resolution:

The TVCs shall be responsible for redressal of grievances andresolution of any dispute arising amongst the Street Vendors or betweenthe Street Vendors and third parties including municipal officials andpolicemen in the implementation of this Policy.

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indian national policy on street vendors 2006

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